On a remittance advice form, who is responsible for writing off the difference between the amount billed and the amount allowed by the agreement?

On a remittance advice form, who is responsible for writing off the difference between the amount billed and the amount allowed by the agreement?

• A. Provider
• B. Payer
• C. Billing Specialist
• D. Patient

Answer: (A)

The difference between the amount billed and the amount allowed is treated as a contractual adjustment. Providers agree with payers to accept the allowed amount as payment in full for that service, so the write-off is recorded by the provider. The remittance advice reflects the allowed amount and the contractual adjustment, reducing the provider’s revenue accordingly. The payer’s role is to pay up to the allowed amount, not to write off the difference. Therefore, the provider is responsible for writing off that difference.

The difference between the amount billed and the amount allowed is treated as a contractual adjustment. Providers agree with payers to accept the allowed amount as payment in full for that service, so the write-off is recorded by the provider. The remittance advice reflects the allowed amount and the contractual adjustment, reducing the provider’s revenue accordingly. The payer’s role is to pay up to the allowed amount, not to write off the difference. Therefore, the provider is responsible for writing off that difference.